Forget new entrants: Here’s the newest challenge to Singapore’s telco triumvirate

Would telcos go against the grain?

Analysts have been fussing about the possibility, and the consequences, of a new entrant in Singapore’s seemingly impenetrable telecommunications sector, but another obstacle looms for the sector’s incumbents.

According to analysts from OCBC, traditional mobile services are also facing increased competition from over-the-top (OTT) apps like Whatsapp and Facebook Messenger.

OCBC adds that this imminent change is structural in nature and affects all telcos.

“One solution is to embrace this and work directly with some of these OTT apps to offer value-added services,” OCBC said.

Meanwhile, in the Pay TV humdrum, OTT operators such as Netflix are also looking to barge in to the market, but they are hindered by the diverse cultural mix.

“It may be harder to “cut the cable” and rely solely on these OTT providers. Meanwhile, the telcos here are also upping their game by being OTT providers themselves, thus further reducing the threat,” OCBC said.

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